Since the advent of the internet and the ability to do all of our shopping online, identity theft has become an ever-increasing problem.
For example, last month, we all heard about the breach of data at Facebook, exposing the private photos of millions of users. Could this lead to identity theft? There’s no telling – think of what you have pictures of in your phone and how that might be synced with your social media accounts.
With or without such data breaches, I have always felt it is extremely important to do everything we can to keep our private information secure. Let’s take a look at what you can do to help protect your identity and what you should do when something like a data breach occurs.
Step 1: Freeze your credit
A credit freeze prevents creditors from accessing your credit report. It also prevents credit loans and services from being approved in your name without your consent. A credit freeze does not affect your credit score. You can freeze your credit by going to each of the three major credit-reporting agencies — Experian, TransUnion and Equifax — and telling them you want to freeze your credit. They will allow you to create a personal identification number, and anytime you want to unfreeze your credit, you just have to provide them with that PIN. Remember to ask about any fees related to freezing or unfreezing your credit.
Step 2: Review your credit reports regularly
I review mine annually and look for any unusual items. I have found many cases in which there was an “open” account that should have been closed years ago. For example, maybe you paid off a mortgage, but the mortgage company failed to report it to all its credit-monitoring companies. You will want to get a report from all three of the major credit-reporting agencies. You have the legal right to a free credit report each year; take advantage of this.
Step 3: Consider changing your credit card number
After a major breach, you may want to consider calling your credit card companies to get new cards sent to you with a change in your credit card number. Why? I suspect that in cases like what happened to Equifax two years ago, the hackers not only had access to Social Security numbers and dates of birth, but also to account numbers and driver’s license numbers. I personally took the time to have all my credit cards reissued and put a freeze on my credit at all three of the reporting agencies.
Step 4: Watch out for phishing and other scams
People who steal data may sell that information to other corrupt individuals. They may try scams such as calling you and using information they already have to get you to reveal other important information. By opening an attachment, you may be allowing scammers access to your computer.
Identity theft has always been a problem, but these days, it seems we need to be more vigilant than ever.
If you or your clients have any tax issues or problems with the IRS/State or other federal tax problems, please feel free to contact me directly at (909) 570-1103 or by email at Carlos@HealthcareTaxadvisor.com
Carlos Samaniego, EA
Enrolled Agent
Licensed by The Department of Treasury to represent taxpayers
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1255 W Colton Ave, #535
Redlands, CA 92374
Ph. (909)570-1103
Fax (909)586-9190
